Elasticity and Demand Quiz

What happens to the quantity demanded when the price of a good with elastic demand increases?

• It decreases significantly.

• It increases significantly.

• It increases slightly.

• It remains unchanged.

Which of the following is NOT a factor that contributes to elastic demand?

• Long-term perspective

• The good being a necessity

• A large portion of income spent on the good

• Availability of substitutes

How does total revenue change when the price of an inelastic good is decreased?

• Total revenue decreases.

• Total revenue increases.

• Total revenue doubles.

• Total revenue remains the same.

What is the elasticity coefficient for a perfectly inelastic demand?

• Greater than one

• Zero

• Equal to one

• Less than one

What does income elasticity of demand measure?

• The change in demand due to price changes

• The change in supply due to income changes

• The change in demand due to income changes

• The change in supply due to price changes